Compiled by Wu Talks about Blockchain
Fox Business invites David Sacks, the US "Crypto Tsar", to discuss the latest executive order issued by President Trump. The executive order signed by President Trump aims to promote innovation in the US crypto industry and artificial intelligence while establishing a clear regulatory framework. The main contents include:
1. Crypto regulatory reform : The Trump administration has pledged to improve the regulatory environment for the crypto industry and promote the United States as a global crypto hub. The executive order established a working group to develop a clear market structure and classification of digital assets (such as securities, commodities, collectibles, etc.).
2. Stablecoins and Digital Dollars : Focus on innovation in stablecoins and promote the international dominance of the U.S. dollar in the digital field, while avoiding the development of central bank digital currencies (CBDCs) to prevent possible threats to personal freedom.
3. Global Competition and Artificial Intelligence : The Trump administration plans to strengthen the development of the field of artificial intelligence, proposing that the United States should become the global center of artificial intelligence and replace the Biden administration’s cumbersome supervision.
4. Views on “Trump Coin” : Trump Coin is considered a digital collectible rather than a cryptocurrency and does not constitute a conflict of interest.
In summary, Trump’s executive order aims to drive innovation in the encryption and artificial intelligence industries through clear regulatory policies, ensure that the United States remains competitive in these cutting-edge fields, and protect individual freedoms.
Note: In modern American politics, "czar" usually refers to a person appointed by the government to provide advice and coordinate policies in a specific area, similar to a "person in charge", "commissioner" or "advisor".
The full text is as follows:
Edward: First of all, thank you for joining us, David. President Trump said on July 27 that he would prevent federal agencies from taking action against the crypto industry. Today he seems to have made good on that promise, right?
David Sacks: Yes, it is. President Trump said during his campaign that he wanted to be the "first crypto president." In his speech in Nashville, he mentioned plans to change the regulatory environment for the crypto industry and promote the United States as the center of the global crypto industry. Today, he signed an executive order instructing the working group to develop a new regulatory framework to promote crypto innovation in the United States, rather than driving the industry overseas as it did during the Biden administration.
Edward: We'll talk about this framework later. First, the executive order mentions the suspension of what President Trump considers to be "excessive law enforcement actions and overreaching behavior." What exactly does he mean?
David Sacks: Over the past four years, the Biden administration has basically prosecuted and suppressed encryption companies, causing many companies to move overseas. I have heard many founders complain that the Biden administration never clearly told them what the rules were, but sued them. What the industry needs most is regulatory clarity. Founders just want to know what the rules are and they will follow them. But the Biden administration has never provided such clear guidance, which has caused all innovations to flow overseas and almost caused the United States to lose this future technology. Now, President Trump has declared that the United States must become the center of global encryption and these innovations should happen in the United States.
Edward: Now that a working group has been established and you are leading it, what are the main areas of focus? What kind of guidelines are expected to be issued?
David Sacks: There are several main areas we are looking at. The first is market structure. We need to clarify what is a security, what is a commodity, and what is a digital asset or collectible. These all need to be clearly defined.
The second area is stablecoins. I think stablecoins are a very interesting area that can help us further expand the global dominance of the US dollar. We have the opportunity to create a digital dollar that can be used globally. The third area is that we will study whether it is necessary to establish a national digital asset reserve. We are still in the evaluation stage of this issue and have not made a final decision yet.
Edward: Regarding digital asset reserves, you haven’t decided whether to move forward, right?
David Sacks: Yes, we are just evaluating this issue now and have not decided whether to move forward.
Edward: So do you think crypto assets are assets or currencies?
David Sacks: When it comes to digital assets, it can take many different forms. For example, some digital assets are securities, some are commodities, and some are collectibles like NFTs or meme coins. So, digital assets are a very broad area of innovation. Because of this, we need a clear regulatory framework that clearly defines each type. What founders need most is these clear rules. They need to know what they can do and not be accused of unreasonable charges for not understanding the rules.
Edward: How far do you think the United States lags behind other countries in the crypto space? How quickly will this executive order allow the United States to catch up?
David Sacks: We will catch up very quickly. Although innovation has begun to lose ground to Singapore and some European countries, I think the United States will quickly reverse this situation. Looking at Silicon Valley and the entire technology industry, the United States is leading in almost all areas, encryption is one of the only exceptions. And now, President Trump's executive order will undoubtedly change this situation.
Edward: Regarding Trumpcoin, it started before the president took office. Are you worried that this will cause a conflict of interest?
David Sacks: I don't think there is any conflict. Trumpcoin is actually a collectible, just like baseball cards or stamps. People buy it to commemorate certain events. So this is my personal opinion, I am not a regulator, but I think there is absolutely no problem.
Edward: The executive order also prohibits the government from developing a central bank digital currency (CBDC). Why was this decision made?
David Sacks: Central bank digital currencies are a huge threat to freedom and privacy. CBDC means a digital currency controlled by the Federal Reserve that could gradually replace cash and record everyone's transactions. This would not only make every transaction transparent, but could also trigger new laws and controls that restrict people's freedom to spend. Everyone is worried that this will become a "1984-style" regulatory model, and no one wants to go down this path. We think we can create something like a digital dollar through stablecoins without going the CBDC route.
Edward: But the government’s digital currency may compete with Bitcoin. Is this also one of the reasons for your decision?
David Sacks: Any government can create a stablecoin, but the dollar is already the world's reserve currency, so I am not worried about competition in this regard. I think we should further expand the dollar's dominance in the digital field and push it into the global online market. This will not only create huge demand for US Treasury bonds, but also help support our finances while lowering long-term interest rates.
Edward: David, last question. You are also a leader in the field of artificial intelligence. The recently signed executive order positions the United States as a global artificial intelligence center. What does this mean for the future?
David Sacks: As President Trump said today, we want the United States to be a global leader in both artificial intelligence and encryption. Both are cutting-edge technologies that are critical to the future. The Biden administration previously issued an executive order of more than 100 pages, which was too cumbersome and the industry also responded strongly. President Trump promised to revoke that executive order and replace it with a more efficient policy, and today he has fulfilled this promise.
Edward: Well, it looks like there will be a lot of changes coming. David Sacks, thank you for sharing.